The present invention relates to a method and system for automated discounting and negotiation. Negotiation can be a time-consuming exercise. Traditionally, time-consuming negotiations are reserved for the sale of expensive items, such as homes and vehicles, where the potential savings in a larger transaction can offset the time cost associated with negotiations. The inefficiency of negotiation is amplified in retail situations where, typically, large volumes of inventory need to be turned over. Large-scale negotiation in these situations has generally been unsuccessful. Furthermore, many consumers are not familiar, or may be uncomfortable, with the negotiation process. Thus, these consumers may steer away from situations that include negotiating. Therefore, a need exists for an automated method and system for negotiating discounts in a retail environment.